Question

Set up the 2015 balance sheet for Circle Corp. based on the following information: cash = $141,000; patents and copyrights = $630,000; accounts payable = $219,000; accounts receivable = $132,500; tangible net fixed assets = $1,655,000; inventory = $300,000; notes payable = $110,000; accumulated retained earnings = $1,250,000; long-term debt = $859,000. (Be sure to list the accounts in order of their liquidity. Do not round intermediate calculations.)

Answer 1

Answer:

Explanation:

Balance sheet: In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:  

Total assets = Total liabilities + stockholder equity  

The debit and credit side of the balance sheet should always be equal and balanced.  

Moreover, it always is prepared on the specified date.

The common stock amount is not given in the question, so it is a balancing figure. It is computed by

= Total assets - total current liabilities - total long term liabilities - accumulated retained earning

= $2,858,500 - $329,000 - $859,000 - $1,250,000

= $420,500

The preparation of the balance sheet is presented in the spreadsheet. Kindly find the attachment below: